Question :
121.BayCityMining,Inc.hasapriceof$20ashare,outstandingsharesof2.5million,retainedearningsof$1milliondollars,andadividendyieldof2percent.Ithasaprice-earningsratioof
a.50,whichishighbyhistoricalstandards.
: 1261790
121.BayCityMining,Inc.hasapriceof$20ashare,outstandingsharesof2.5million,retainedearningsof$1milliondollars,andadividendyieldof2percent.Ithasaprice-earningsratioof
a.50,whichishighbyhistoricalstandards.
b.50,whichislowbyhistoricalstandards.
c.25,whichishighbyhistoricalstandards.
d.25,whichislowbyhistoricalstandards.
122.AlphaCorporationhasapriceof$5ashare,outstandingsharesof2.5million,retainedearningsof$1milliondollars,andadividendyieldof2percent.Ithasaprice-earningsratiowhichis
a.high,perhapsindicatingthatpeopleexpectfutureearningstorise.
b.high,perhapsindicatingthatpeopleexpectfutureearningstofall.
c.low,perhapsindicatingthatpeopleexpectfutureearningstorise.
d.low,perhapsindicatingthatpeopleexpectfutureearningstofall.
123.AlowP/Eforastockindicatesthat
a.peoplemayexpectearningstofallinthefuture,perhapsbecausethefirmwillbefacedwithincreasedcompetition.
b.itsdividendshavebeenlowsothatnooneiswillingtopayverymuchforit.
c.thecorporationispossiblyovervalued.
d.Alloftheabovearecorrect.
124.SupposeSarahLeeCorporationstockhasaP/Eratioof8.ThisP/Eratioisrelatively
a.low,indicatingthatbuyersmayexpectearningstorise.
b.low,indicatingthatbuyersmayexpectearningstofall.
c.high,indicatingthatbuyersmayexpectearningstorise.
d.high,indicatingthatbuyersmayexpectearningstofall.
125.Whichofthefollowingiscorrect?
a.Joantakessomeofherincomeandbuysmutualfundshares.Joan’spurchasewillbeincludedintheinvestmentcategoryofGDP.
b.IfashareofstockinVirtualPizzaCorporationsellsfor$77,theearningspershareare$5,andthedividendpershareis$2,thentheP/Eratiois11.
c.Inordertouseequityfinance,afirmmustsellaboutequalvaluesofstocksandbonds.
d.Noneoftheaboveiscorrect.
Usethefollowingtabletoanswerthefollowingquestions.
Table26-1
Stock
Sym
Yld%
P/E
Vol1000s
Hi
Lo
Close
NetChg.
GenMills
GIS
3.0
18.4
1659
51.57
51.10
51.09
–0.06
Microsoft
MSFT
2.6
18.6
20,315
36.15
35.59
35.67
0.02
Graco
GGG
1.5
25.3
101
68.39
67.63
68.09
0.00
Hershey
HSY
1.8
29.9
956
83.62
82.87
83.38
0.13
126.RefertoTable26-1.Indollarterms,whichcompanypaidthehighestdividendpershare?
a.GenMills
b.Microsoft
c.Graco
d.Hershey
127.RefertoTable26-1.WhatwasHershey’searningspershare?
a.$29.90
b.$2.79
c.$1.50
d.$0.36
128.RefertoTable26-1.Assumethattheclosingpricewasalsotheaveragepriceatwhicheachstocktransactiontookplace.WhatwasthetotaldollarvolumeofGracostocktradedthatday?
a.$68,770,900
b.$6,877,090
c.$687,709
d.$6,877.1
129.RefertoTable26-1.WhichfirmhadtheP/EratiothatwasclosesttothehistoricallytypicalP/Eratio?
a.GenMills
b.Microsoft
c.Graco
d.Hershey
Usethefollowingtabletoanswerthefollowingquestions.
Table26-2
Stock
Sym
Yld%
P/E
Vol1000s
Hi
Lo
Close
NetChg.
BoeingCo.
BA
1.90
19.83
10,325
105.65
103.10
101.87
-1.99
EliLilyandCo.
LLY
3.80
12.41
1,794
51.72
51.17
51.45
0.02
KraftFoodsGroup
KRFT
3.50
21.42
1,078
56.51
57.75
56.69
0.04
KelloggCo.
K
2.60
26.18
680
66.25
66.69
66.50
0.12
130.RefertoTable26-2.Whichcompanyhadthehighestdollardividendpershare?
a.BoeingCo.
b.EliLillyandCo.
c.KraftFoodsGroup
d.KelloggCo.